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Wednesday, November 28, 2012

Apple Inc. (NASDAQ:AAPL): Lead Times of iPhone 5 is Reduced to One Week

Ever since the release
of the Apple Inc.(NASDAQ:AAPL)’s iPhone 5, there have been reports of the
supply-demand ratio, with the latter being in excess of the former. In fact,
Foxconn, who is responsible for manufacturing the model, has stated that the
iPhone 5 is one of the most complex smartphones in recent years and a
considerable amount of time has to be devoted to make one unit.

However on November 26,
a consumer checked the shipping lead times for the iPhone 5 in twenty-one of
the twenty-three countries, and he found that they had decreased from two weeks
to one week. This indicated that the latest shipping date had stayed constant
at December 3 for the past three weeks. The two other countries, Belgium and
Thailand are expected to drop to one week soon.

In the in twenty-two of
the twenty-three countries, there is a restriction of a two phone order limit.
But the US does not come under this category. There is a reservation system
being followed in Hong Kong and Japan although there are no shipping dates mentioned
on the websites. The decrease in the lead shortening of the iPhone time is
perfectly in sync with the fact about how major US carriers lead times had gone
to immediate availability.

Even though Foxconn has
expressed their opinions about the difficulties of producing so many iPhone
5’s, they have apparently mastered the process, which is why the gap between
supply and demand is slowly being bridged. Apple might achieve a target of
selling 50 million iPhones in the December quarter vs. 26.9 million in the
September 2012 quarter and 37 million in the December quarter last year. The
company wants to make iPhone 5 available in 100 countries with 240 carriers by
the end of this year.

8 comments:

Surprising there is still 'lead time' for a mediocre phone with many flaws, that sells at super-premium phone prices.People buying this phone (and most Apple products) should be embarrassed to be lured in by a cool image and glitzy-looking products in this day and age of readily-available information.

If there are millions of people who like and buy apple products it is because they like them, not because they are uninformed.

Samething with cars, VW passat is built in the same factory with the same specs as an Audi A4 yet people like the Audi A4 better and are willing to pay a premium for a cooler design and some extra confort features

Apple gives you that with their ecosystem integration and their industrial design

It's funny reading all the comments on the web about if you don't like it, don't buy it. I think in the end people will take that to heart and just won't buy it.Apple used to be king, but to quote Bob Dylan, "The Times They Are a-Changin'"